- Marketplace Tax Collection is a program to calculate, collect, and remit sales taxes on behalf of third party sellers in some locations.
- A Marketplace Facilitator is defined as a marketplace that contracts with third party sellers to promote their sale of physical property, digital goods, and services through the marketplace.
- As a result, Amazon is deemed to be a marketplace facilitator for third-party sales facilitated through www.amazon.com.
- Marketplace Facilitator legislation is a set of laws that shifts the sales tax collection and remittance obligations from a third party seller to the marketplace facilitator.
- As the marketplace facilitator, Amazon will now be responsible to calculate, collect, remit, and refund state sales tax on sales sold by third party sellers for transactions destined to states where Marketplace Facilitator and/or Marketplace collection legislation is enacted.
- In certain states, local taxes are not included within Marketplace Facilitator Legislation; Amazon is not responsible for those taxes.